Technical Chart Analysis on HengXin By Quest.

A little help from Quest and he did his analysis on HengXin Technology.





The chart can be viewed here 21st Century Quest!


Thanks Quest.





Cheers
Niversphere.

Singapore firms must not rush blindly into M&A deals: PwC By Wong Choon Mei, Channel NewsAsia

SINGAPORE : In their quest to internationalise, Singapore firms must prioritise which markets to move into first.

That is the advice from PricewaterhouseCoopers (PwC).

It says Singapore firms should not rush into acquisitions just for the sake of extending their regional footprint.

They should rather seek value through a patient and strategic selection process.

The mergers and acquisitions (M&A) market in Asia is growing fast, thanks to the sanguine global economy and burgeoning corporate wealth.

Last year, the value of M&A deals transacted in the region totalled US$38.7 billion.

Here in Singapore, firms too have shown keen interest to expand - not just domestically but also regionally.

And PricewaterhouseCoopers says this is where they have to be cautious and avoid over-aggressive moves.

"The markets are getting pretty efficient all over the world. So if you spring a deal anywhere, but can't earn back the cost of capital on the investment that you're making, you'll be negatively impacted no matter where you are. And if you can show, anywhere in the world, that you can actually increase the spreads between your return on capital and cost of capital, you'll be rewarded by investors anywhere," said Dr Mark Sirower, partner at PricewaterhouseCoopers.

According to PwC, most acquirers in an M&A transaction lost shareholder value, while sellers usually gained.

This is because firms tend to lose sight of the basics during the hunt for market share.

It says the keys to any successful merger are prudent pricing, business synergy and the ability to deliver upon integration.

"That's to basically understand the markets they are looking at. It's about understanding how their customers buy in those markets, how their customers' buying decisions are different across markets, what the underlying markets' growth rates are and what their competitors can do," said Dr Sirower.

"Some markets are going to have stronger competitors than other markets. So at the end of the day, I want to prioritise the market, I'm not going to go in everywhere at the same time. So I want to find those markets that have the capabilities," he added.

OCBC and DBS are among some of the top Singapore firms that launched high-profile M&A bids this year.

- CNA /ls

Article excerpted from:
http://www.channelnewsasia.com/stories/singaporebusinessnews/
view/217217/1/.html

Cheers
Niversphere.